Color coded digit identifying value ribbon for document fraud prevention

ABSTRACT

The present disclosure has to do with prevention of the fraudulent alteration of negotiable instrument amounts and particularly the alteration of negotiable check amounts by the so-called &#39;&#39;&#39;&#39;cut and paste&#39;&#39;&#39;&#39; method wherein the digit value amount or amounts may be cut from one check and inserted into a previously provided cut out in another check so as to &#39;&#39;&#39;&#39;raise&#39;&#39;&#39;&#39; the amount of the latter. The invention contemplates the utilization of a multicolor ribbon in conjunction with a socalled free-floating prefix to designate the origin of this item. Each of the digits of the amount, e.g. thousands, hundreds, tens, units, and cents is coded a separate, distinguishable color. Each color is different for each digit with the code preselected by the issuing entity. A check, for example, issued by the Home Federal Savings Bank for the sum of $1,234.56 would be coded as follows: the floating prefix Home Federal (black), the one (for 1,000) red, the two (for 200) black, the three (for thirty) orange, the four (for four dollars) blue, the &#39;&#39;&#39;&#39;and&#39;&#39;&#39;&#39; grey, the &#39;&#39;&#39;&#39;56&#39;&#39;&#39;&#39; green, and the &#39;&#39;&#39;&#39;cts&#39;&#39;&#39;&#39; (cents designation) brown. Alteration by cutting and pasting of the amount digits to fraudulently raise the amount is immediately, visually recognizable without the aid of machine hardware due to misplaced colors. Fraud, being thus at once apparent, payment of the amount of the item can be immediately stopped or checked.

United States Patent 1191 Reitano 1 1 ,lan.7,11975 [75] Inventor:

[73] Assignee: Burroughs Corporation, Detroit,

Mich.

221 1 11611; Nov. 3, 1972 21 Appl. No.: 303,382

52 us. c1 197/172, 197/151, 101/19, 283/8 R, 283/9 R 511 1m. 01 B4lj31/02 [58] Field of Search 197/1 R, 151, 172; 101/19, 101/20, 96 R, 96RC, 97, 336; 283/8 R, 8 A,

8 B, 9 R, 9 A

[56] References Cited UNITED STATES PATENT-S 385,391 7/1988 Underwood eta1. 197/172 1,130,020 3/1915 Ramsey 197/172 1,144,742 6/1915 Todd et a1283/9 R 1,145,447 7/1915 Todd et a1 283/9 R 1,153,832 9/1915 Thorson101/20 1,244,946 10/1917 1,372,323 3/1921 1,833,391 11/1931 1,909,1415/1933 1,929,828 10/1933 2,029,646 2/1936 2,092,852 9/1937 2,255,1049/1941 2,590,200 3/1952 Neidich 197/172 2,733,656 2/1956 Gottsching283/8 R X 2,826,140 3/1958 Jagger 101/336 X 3,143,200 8/1964 Gutman197/172 3,200,740 8/1965 Schaller et a1 197/172 X 3,481,446 12/1969Burkhardt et a1... 197/151 3,486,006 12/1969 Siegel 197/172 X Carmen T.Reitano, Methuen, Mass.-

Postal 197/151 FOREIGN PATENTS OR APPLICATIONS 780 0/1854 Great Britain283/8 R 440,835 1/1936 Great Britain 283/8 R Primary Examiner-Ernest T.Wright, Jr. Attorney, Agent, or Firm-Paul W. Fish; Patrick D. Ward;Edward G. Fiorito 57 ABSTRACT The present disclosure has to do withprevention of the fraudulent alteration of negotiable instrument amountsand particularly the alteration of negotiable check 'amounts by theso-called cut and paste method wherein the digit value amount or amountsmay be cut from one check and inserted into a previously provided cutout in another check so as to raise the amount of the latter. Theinvention contemplates the utilization of a multicolor ribbon inconjunction with a so-called free-floating prefix to designate theorigin of this item. Each of the digits of the amount, e.g. thousands,hundreds, tens, units, and cents is, coded a separate, distinguishablecolor. Each color is different for each digit with the code preselectedby the issuing entity. A check, for example, issued by the Home FederalSavings Bank for the sum 'of $1,234.56 would be coded as follows: thefloating prefix Home Federal (black), the one (for 1,000) red, the two(for 200) black, the three (for thirty) orange, the four (for fourdollars) blue, the and grey, the 56 green, and the cts (centsdesignation) brown. Alteration by cutting and pasting of the amountdigits to fraudulently raise the amount is immediately, visuallyrecognizable without the aid of machine hardware due to misplacedcolors. Fraud, being thus at once apparent, payment of the amount of theitem can be immediately stopped or checked.

2 Claims, 24 Drawing Figures PATENTEDJAN W5 3,858,705 sum 10F a FIGZ. J

BLACK RED BLACK ORANGE BLUE GREY GREEN BROWN EEEEEEEi HiIIIESiii mm;

PATEMED 3,858,705

sum 30F a FMVA. 38

MT VAHD GIER TEN DOLLARS v FIG.8A. {""TFYR'S'T ENATIONAL PATENIEUJAN W53,858.705

'FIG. [3.

Ears

COLOR CODED DIGll'll IDENTIFYING VALUE RIBBON FOR DOCUMENT FRAUDPREVENTION BACKGROUND OF THE INVENTION A search of the prior art hasdeveloped the following patents: U.S. 1,153,832 S. T. Thorson U.S.1,372,323 C. G. Tiefel U.S. 1,909,141 A. H. Woodward et al.

U.S. 1,929,828 J. Schlitz U.S. 2,029,646 H. C. Welter U.S. 2,733,656 A.Gottsching U.S. 2,826,140 H. Jagger U.S. 3,481,446 G. Burkhardt et al.

U.S. 3,578,136 R. H. Postal British 780 G. Ross British 440,835 A.Gilbert The prior art is replete with a variety of techniques anddevices attempting to prevent document fraud by alteration of the amountand/or signature. Some of these patents rely on mechanical means forperforating the amount into the body of the document, others rely onwatermarked amounts which vary in color, still others employ electronicor electromechanical hardware operative in conjunction with the suspectdocument to detect fraudulent alteration thereof. None of the knownprior art, either singly or in combination, teach the color coded digitidentifying value ribbon of the present invention. In those knowninstances where different colors are used, they are either black and redto distinguish between dollars and cents, for example, or they are'colors watermarked into the document to identify the value of thedocument.

The present invention contemplates the employment of a portable,visible, legible and universally understood multicolor coding wherein asimple change of ribbons by the issuing entity can suffice to alter thecode should the occasion arise.

SUMMARY OF THE INVENTION The present invention as described hereinutilizes ribbon of conventional dimensions which may be employed with aknown checkwriter. The novel ribbon is provided with a prearranged colorcoding such that each of the digits, units, tens, hundreds, thousands,ten thousands, etc. will be printed in a different color. The ribbon isor may be employed with a type of checkwriter such as the BurroughsT8859 or T8959 which shreds the amount into the body of the documentcausing the ink of each color to bleed into the fibre of the paper ofthe item and be visible from the reverse side of the document: 4

The use of the color coded ribbon of the present invention enables thebank teller or other similar type personnel handling documents such aschecks and negotiable bills bearing dollar amounts thereon to quicklyand easily discover any alteration of amount simply by looking at theitem and comparing the colors of the digits with the predesignated colorsequence code.

Any alteration such, for example, as by cutting out one or more digitsand either superimposing and overprinting the amount or pasting the cutdigits into the cutout item area of a second, low value item, thereby toraise the value of that item, is quickly and efficiently detected by eyesince the preceded color sequence is now broken and the colors are outof order with respect to the color code.

It is an important object, therefore, of the present invention toprovide a portable, flexible, legible and universally, visuallyunderstood color coding identifying the digit values of any negotiabledocument.

It is also an object of the invention to provide a multicolor ribbon,the colors of which identify a predesignated code signifying individualdigits of a multidigit amount as used in a negotiable document.

A still further object of the invention is to automatically vary thecolor coding of a floating prefix visually identifiable and located tothe left of the most significant digit in the amount on the document.

BRIEF DESCRIPTION OF THE DRAWING FIG. 1 is an isometric view of theamount carrying portion of a document employing the present inventiongreatly enlarged for viewing ease;

FIG. 2 is a visual representation of the color coding arrangementemployed in the invention;

FIG. 3 is a greatly enlarged view of an amount portion of a documentillustrating the mismatch caused by fraudulent alteration;

FIGS. 4, 4A, and 4B illustrate in greatly enlarged detail a portion ofan item amount area illustrating the alteration of the item amount byerasure;

FIGS. 5, 5A, and 5B illustrate in greatly enlarged detail the manner inwhich an additional digit may be inserted ahead of the previous mostsignificant digit to fraudulently alter and increase the amount of anitem;

FIGS. 6, 6A, and 6B illustrate in enlarged detail a different attempt tofraudulently raise the value of the item by altering the prefix as wellas the dollar sign;

FIGS. 7, 7A, 8, 8A, and 8B illustrate the composite technique whereinthe items of relatively low value are cut out and the parts reconfiguredto make one item of higher value as illustrated in FIG. 88;

FIGS. 9, 9A, and 10 represent the obverse and re-' verse portions of anitem greatly enlarged illustrating a method of preventing checkalteration by the composite method; I

FIGS. 11 and 111A illustrate the technique of the present inventionwherein the alteration of a visual color coded identifying value is madeimmediately, visually apparent;

FIG. 12 is an isometric view of the color coded ribbon employed in acheckwriting device to produce a coded amount on the item in accordancewith the teaching of the present inventionj and FIG. 13 is an enlargedschematic view of a color coded check in accordance with the presentinvention.

PREFERRED EMBODIMENT OF THE INVENTION The present invention hasapplication generally to negotiable documents which bear on their facemoney amounts expressed in multiple digits such, for example, as theordinary negotiable business or payroll check. These items areincreasingly involved in fraudulent alteration. Another negotiabledocument to which this invention has application is the money order ordraft issued by various banks. The latter is available in many, if notall, larger banks and can be kited with relative ease and impunity. Thepresent invention makes such alteration practically impossible to escapedetection since the color code technique requires that the colorsequence must match the color coding perfectly. If

there is any mismatch, the fraudulent alteration is immediately, visiblydetectable, subjecting the item to nonpayment as or when presented.

Referring to the figures, which will be discussed in sequence, it isnoted that three prime areas exist with respect to check frauddetection. These include the prefix, the check paper, and the ribbon.

The mechanical structure (checkwriter) embodying the present inventionis shown and described in one or more patents of Burroughs Corporation,representative of which is US. Pat. No. 2,092,852 to W. B. Payne,entitled, Checkwriting Machine".

It is desirable to print a dollar sign or other monetary designation,with or without other characters or words, immediately to the left ofthe highest denomination figure to be printed, in order that there maybe no place left in which other figures may be inserted in an attempt toraise the value of the check or draft. Since the number of digits to beprinted may vary considerably, it is obvious that the matter to beprinted immediately to the left of the highest digit cannot be printedfrom a fixed or immovable type, because it is to be printed at differenttimes in different positions, depending on the number of denominationsor digits which are to be printed. Hence the so-called prefix is printedin the present case from a movable or floating" type which is arrangedto be shifted longitudinally along the printing line to a position nextto the highest denomination of digit to be printed.

The prefix character and associated mechanism are best shown in FIGS. 3,6, 9, l8, and 19 of Pat. No. 2,092,852.

After an amount has been set up on the keys of the checkwriter and whenthe machine is being operated to print the amount, one of the earliestthings that takes place, soon after the type disks or wheels begin tomove, is that the right hand end of the prefix character comes intocontact with the left hand surface of the type segment of the highestdenomination which has been moved from the blank position to print anydigit. Further rightward movement of the prefix character is stopped bythis contact with the highest denomination type segment, and the end ofthe prefix character then presses lightly against the side of the typesegment, during the remainder of the setting movement of the typesegment if this segment has not already completed its settingmovementbefore the prefix character contacts with it. In thosedenominations higher than the highest significant digit to be printed,the prefix character moves, of course, through open spaces or notches infront of the type segments. It is thus seen that the letters, figures,or signs which are formed on the prefix type character will be printedimmediately adjacent the highest denomination digit to be printed,irrespective of the number of digits which are to be printed.

The type prefix character may carry any suitable designation orwordings, Home Federal", Exactly etc. The right hand edge of thecharacter, when in its normal position on the carrier, is flush with theright hand edge of the carrier, so that both the carrier and the typecharacter come into contact with the left hand surface of the typesegment at the same instant, and there is no tendency, by reason ofinertia, to displace the type character along the carrier.

Since the floating prefix, so-called, is that portion of the die memberwhich is used with the standard checkwriter to shred the name ofthedispersing bank into the fibers of the check paper, if the prefix isalso printed, then the ink bleeds through the shredded area to the backof the check. Many old style checkwriters had prefix dies which includeda dollar sign as part of their design. This old style dollar sign didnot have a vertical bar which passed completely through the S. This madethe alteration of the dollar sign to an eight or nine relatively easy.

FIG. 4 illustrates an enlarged portion of a document, e.g., check 10,with a prefix 12 and a dollar sign l4 drawn as an S with two verticalbars therethrough. FIG. 4A shows how alteration of this S dollar sign 14by erasure permits the same to be changed to an eight (8) 16. This makesthe amount originally drawn as zero dollars now $80. FIG. 48 illustratesthe alteration of the same dollar sign 14 so as to squeeze a numeralnine (9) 18 between the original dollar sign l4 and the original zero tomake the amount now read $90.

In order to avoid the problems created by this alterable dollar signprefix 14, the prefix was changed and the new dollar sign 20 was printedin reverse fashion as seen in FIG. 5. However, as seen in FIGS. 5A and5B, this was really no deterrent to check fraud alteration because bymeans of erasure the dollar sign 20 again could be altered to either an8 22 or a 9 24, as shown respectively in FIGS. 5A and 5B.

Many of the known prefixes employ what is known as symmetrical alignmentof text in the prefix, FIG. 6. Such symmetrical layouts of text 26 madeit possible by means of mechanical erasure to provide space in theamount area for the insertion of a fraudulently introduced figure ordigit 18 designated as 28 in FIG. 6A, or the fraudently introducedfigure or digits l9 designated as 30 in FIG. 6B; in both instances theamount is seen to be easily altered by virtue of the symmetry of theprefix arrangement.

One solution to the foregoing problem, as illustrated in FIGS. 7 and 7A,was to remove the dollar sign completely from the prefix and place thetext 32 in position so that all of the letters thereof would be flush tothe first numeral 34 of the amount figure 36. In addition to theforegoing, the die of the character was modified to print the notice 38Not Valid Over Ten Dollars" on the face of the check.

Unfortunately, the foregoing techniques, while for the most part helpfuland certainly aimed in the right direction to point up fraudulentalteration of amounts on checks did not solve a very difficult andincreasingly noted problem of the so-called composite technique. Acomposite, FIGS. 8, 8A, and 8B, is an altered check manufactured fromtwo checks of lesser amounts. As an example, a person desiring tofraudulently alter the amount of a check would purchase two checks, onefor $2 and one for $24. Using an extremely sharp surgicallike diecutting device, a section of the check stock bearing the prefixdesignation First National 40 is cut from the $2 check. Then the section42 of the second check bearing the designation First National andnumerals 24 is cut from the second check. Now, by carefully placing theFirst National 24 cut out 42 into the opening in the check vacated bythe First National cut out 40, the check kiter has manufactured a bogusitem 44 of $242 for an investment of $26.

The paper problem herein above referred to upon investigation revealsthat existing check safety paper, although in general effective againstmechanical or chemical alteration, is apparently incapable of alertingvictims to the fact that a composite has been employed fraudulently toobtain money. A protective screen device comprised of a nonrepeatingdesign appeared capable of offsetting this abuse or at least making thefraud immediately apparent. Such a design was developed using the wordregister 46 as seen in FIG. 9. The front side of the check is shown inFIG. 9 while FIG. 9A illustrates the word register 46a on the reverseside of the check. This technique is disclosed and claimed in copendingU.S. Patent application Ser. No. l27,583, filed Mar. 24, 1971, entitledAn amount protected negotiable instrument and method for protecting theAmount by Carmen J. Reitano and assigned to the same assignee as thepresent invention.

FIG. 10 illustrates how the amount protective screen 46 alerts apotential victim, i.e. merchant, bank teller, etc. to the fact that acomposite has been perpetrated. The misregistration produced by theattempt at fraudulent composite alteration of the check amount as itwould be viewed by the holder of the check is clearly apparent. FIG. 3illustrates the misregistration as seen from the reverse side of thecheck. In each instance, the integrity of the letters comprising theword register" have been destroyed.

As noted herein before, although many prior art techniques are known andavailable for preventing fraudulent alteration of document amounts,there was a general ineffectiveness on the part of any of these measuresto prevent the fraud in the first instance or to make the victim awareof the fraudulent alteration of a negotiable document after the fact ina simple, unencumbered manner without recourse to complex systems and/orsophisticated hardware. The inventive technique described in the subjectapplication provides a positive means of identifying the value of eachdigit as originally placed on the document simply, easily, and visuallyby looking at the document and comparing it to a preset standard colordigit identifying code.

The two examples of FIGS. 11 and 111A illustrate quite clearly what ismeant by the term color coded digit value identifying ribbon or CCDVIR.Unfortunately, the black and white of the printing does little to make avisual comparison as startling as the actual colors would be. However,the coded amount area on the check as seen in FIG. Ill with reference tothe chart of FIG. 2 includes the prefix designation 50 ending in CO inblack, the one digit 52 is red, the two digit 54 is black, the threedigit S6 is orange, the four digit 58 is blue, the letters and 60 aregrey, the digits 00 62 are green, while the cts 64 designation is brown.Now, if it be assumed that the bank has predesignated this particularcolor code sequence for use by its patrons, then when the check fraudartist attempts fraudulently to raise the amount of the check whichoriginally was passed into commerce in the amount of $1,234.00 to theamount of $2,413.00, it becomes quickly, easily, readily apparent fromlooking at the color digit 2 413 in FIG. lllA'that these digits are thewrong color for the digit sequence relative to the original check amountillustrated in FIG. llll.

As seen in FIG. 12, the color coded digit value identifying ribbon 70with its multicolored sections is adapted to be used with the availablecheckwriters known to exist today. The ribbon 70 is passed from a supplyreel 72 over the serrated platen 74 of the machine and between theplaten 74 and the check 10 to a take up reel 76. The digit identifyingnumber disks or wheels 78 which place the actual digit values on thecheck 10 through the color coded ribbon are arranged adjacent thefloating prefix designating element or die 80 above the check 10. Asdescribed in detail in the Payne Pat. No. 2,092,852, earlier referred toherein, the floating prefix designating element or die 80 is laterallymovable from side to side of the machine and thus prints out on the itemin a color or colors varying with its location next to the mostsignificant digit.

When it is desired to shred in the digit value identifying color coding,the digit wheels 78 and prefix die 80 are pressed against the ribbon 70and against the check 10 above the serrated platen 74 therebeneath,causing the colors to be printed into the material of the check 10 sothat absolute and positive control of the amounts is produced,completely thwarting and making obvious any attempt to fraudulentlyalter the amount of the check 10.

As seen most clearly in FIG. 13 as the value decreases in amount, thefloating prefix designating element or die 80 adjusts its positionadjacent the most significant digit, thus the floating prefixdesignating element or die 80 further enables the holder-viewer of thealtered check 10 to be visually aware of the fraud by noting the colorsequence mismatch.

The everchanging color of the floating prefix provides an additional andsignificant safeguard against illegal alteration of item amount. Withthe color coding as set forth hereinabove then the following would betrue.

a. A prefix ending in green could never appear on a check over $9.99.

b. A prefix ending in orange could never appear on a check over $99.99.

c. A prefix ending in brown could never appear on a check over $999.99.

Adoption of the color coding ribbon 70 is simply effected by providingthe tellers station with a color key sample check. Any variations fromthe sequence would signal a fraudulent change or alteration of amount.

What is claimed is: v

1. Color coded digit value identifying means for making a multicolorimpression on a negotiable document comprising:

a multicolor ribbon including distinguishable separate colored areas ofred, black, orange, blue, gray, green and brown extending from end toend thereof and a separate contiguous'black area for receiving animpression from a prefix designating element and forming a color codedigit value identifying means from the most to the least significantdigit position,

means mounting said ribbon for indexible presentation to an impressionreceiving area,

a plurality of digit impression producing elements,

a prefix designating element selectively movable so as to be positionedadjacent to the digit of largest denomination,

a take up member for said ribbon adjacent said impression receivingarea, and

said ribbon mounting and indexing means and said movable prefixdesignating element being movable to position a selected color area ofthe ribbon adjacent to said prefix designating element at the impressionreceiving area responsive to the movement of the digit impressionproducing elements to the selected denominational order position to inga multicolor impression on a negotiable document 10 comprising:

a multicolor ribbon including distinguishable separate colored areasextending from end to end thereof and a separate contiguous area forreceiving an impression from a prefix designating element, said ribbonbeing arranged so that each color red, black, orange, blue, gray, greenand brown represents a digit of different denomination increasing invalue from brown to red so that the color of the impression from saidribbon is caused to change as the amount increases in value with theprefix designating element color being likewise altered according to thechange in amount,

means mounting said ribbon for indexible presentation to an impressionreceiving area,

a plurality of digit impression producing elements,

a prefix designating element selectively movable so as to be positionedadjacent to the digit of largest denomination effective to produce acolor, contrasting to that of the highest value digit,

a take up member for said ribbon adjacent said impression receivingarea, and

said ribbon mounting and indexing means and said movable prefixdesignating element being movable to a selected color area of the ribbonadjacent to said prefix designating element at the impression receivingarea responsive to the movement of the digit impression producingelements to the selected denominational order position to shred andprint the image of the digits of the amount and said designating elementinto a negotiable document so that the code of the colors from least tomost significant digit corresponds to the predesignated positionalorientation of colors of the ribbon whereby alteration of the amount orany portion thereof is immediately visibly apparent.

1. Color coded digit value identifying means for making a multicolorimpression on a negotiable document comprising: a multicolor ribbonincluding distinguishable separate colored areas of red, black, orange,blue, gray, green and brown extending from end to end thereof and aseparate contiguous black area for receiving an impression from a prefixdesignating element and forming a color code digit value identifyingmeans from the most to the least significant digit position, meansmounting said ribbon for indexible presentation to an impressionreceiving area, a plurality of digit impression producing elements, aprefix designating element selectively movable so as to be positionedadjacent to the digit of largest denomination, a take up member for saidribbon adjacent said impression receiving area, and said ribbon mountingand indexing means and said movable prefix designating element beingmovable to position a selected color area of the ribbon adjacent to saidprefix designating element at the impression receiving area responsiveto the movement of the digit impression producing elements to theselected denominational order position to cause the image of the digitsof the amount and said designating element to be printed and shreddedinto a negotiable document so that the code of the colors from least tomost significant digit corresponds to the predesignated positionalorientation of colors of the ribbon whereby alteration of the amount orany portion thereof is immediately visibly apparent.
 2. Color codeddigit value identifying means for making a multicolor impression on anegotiable document comprising: a multicolor ribbon includingdistinguishable separate colored areas extending from end to end thereofand a separate contiguous area for receiving an impression from a prefixdesignating element, said ribbon being arranged so that eaCh color red,black, orange, blue, gray, green and brown represents a digit ofdifferent denomination increasing in value from brown to red so that thecolor of the impression from said ribbon is caused to change as theamount increases in value with the prefix designating element colorbeing likewise altered according to the change in amount, means mountingsaid ribbon for indexible presentation to an impression receiving area,a plurality of digit impression producing elements, a prefix designatingelement selectively movable so as to be positioned adjacent to the digitof largest denomination effective to produce a color, contrasting tothat of the highest value digit, a take up member for said ribbonadjacent said impression receiving area, and said ribbon mounting andindexing means and said movable prefix designating element being movableto a selected color area of the ribbon adjacent to said prefixdesignating element at the impression receiving area responsive to themovement of the digit impression producing elements to the selecteddenominational order position to shred and print the image of the digitsof the amount and said designating element into a negotiable document sothat the code of the colors from least to most significant digitcorresponds to the predesignated positional orientation of colors of theribbon whereby alteration of the amount or any portion thereof isimmediately visibly apparent.